Biggest Annual Gain Since 2010

• Gold surged 27% in 2024, driven by Federal Reserve rate cuts, sustained haven demand, and record central bank purchases.

Safe Haven Appeal

• Geopolitical uncertainties and a risk-off mood in global markets bolstered gold’s reputation as a safe haven asset.

Fed’s Rate Path in Focus

• Investors are closely watching the Fed’s next moves, as Chair Jerome Powell signaled caution over the pace of rate cuts amid inflation concerns.
• Lower interest rates generally support gold, which doesn’t yield interest.

Precious Metals Rally

• Alongside gold, silver, palladium, and platinum also gained on the year’s first trading day.

Spot Price Update

• Spot gold climbed 0.6% to $2,640.57 an ounce as of midday in London, reflecting continued upward momentum.

What’s Next?

• Upcoming US economic data, including jobless claims and manufacturing reports, could shape expectations for the Fed’s policy trajectory in 2025.